Version: BM, CN

It’s tax filing season!

We’ve come to the time of year where everyone in Malaysia is busy filing taxes (or learning how to – we have just the guide for the tax filing process for you!).

Even though you have to pay tax on your chargeable income when your annual salary reaches a certain amount, did you know that you can get tax relief benefits from filing your taxes?

What’s better, the MADANI Government has made an exciting announcement for 2025 Budget Malaysia: first-time home buyers can now enjoy a tax break of up to RM7,000 when buying residential properties that cost up to RM500,000.

To qualify for this tax relief, you will need to finalise a home loan agreement from January 1, 2025, to December 31, 2027.

So make sure to keep all of your receipts! Let’s see what you can claim when filing your taxes with the Inland Revenue Board Malaysia:

List of Income Tax Relief for Year of Assessment 2025

1. Individual

Key conditions:

• Sale and Purchase Agreement dated between 1 January 2025 and 31 December 2027
• Applicable to the first residential property only

2. Medical & Special Needs

Includes:

• Serious illnesses
• Fertility treatment
• Vaccination (capped at RM1,000)
• Dental examination and treatment (capped at RM1,000)
• Mental health screening and consultation
• Self-test health kits and monitoring equipment

3. Lifestyle

a. Lifestyle expenses cover:

• Books and reading materials
• Personal computer, smartphone or tablet
• Internet subscription bills
• Skills development and self-improvement course fees

b. Sports-related expenses include:

• Sports equipment
• Facility rental or entrance fees
• Competition registration fees
• Gym membership or sports training fees

4. Insurance & Contributions

5. Child Relief

Important notes:

• Childcare and kindergarten relief applies to children aged 6 and below
• Breastfeeding equipment relief is for female taxpayers only
• Claimable once every two years of assessment

If you’re thinking of saving more money, remember to fill in these tax deductions when you file your tax – and get additional relief from paying less tax, or no tax at all!

IQI is constantly expanding! With a positive working environment that encourages continuous growth, joining us as a real estate negotiator might be your best choice. Drop your details below!

Continue reading:

1. How to File Your Income Tax in Malaysia (2026 ver.)
2. The Ultimate Guide on How to Claim Income Tax Refund Malaysia
3. What is Tax Identification Number Malaysia (TIN) and how can you obtain it?

The post Claim Your Tax Reliefs When Filing Your Taxes! | List of Personal Income Tax Relief 2026 Malaysia appeared first on IQI Blog.

Are you considering investing in Vietnam’s booming property market but feeling lost, like you’re in a maze of endless info loops? You see headlines about Vietnam’s attractive prices and hear it’s a top spot in Southeast Asia, but you’re worried about making any costly mistakes or getting tangled in red tape.

This guide is designed to be your strategic roadmap, lead you through the maze to decode the critical 2025 legal changes and outline a straightforward, step-by-step process to help you invest with confidence.

Key Takeaways

• Booming Market with Strong Fundamentals: Vietnam’s economy is projected to grow by 6.5% to 8% in 2025, driven by a young population, rapid urbanization, and significant foreign direct investment (FDI) from the “China+1” strategy.
• Foreigners Can Buy, But with Rules: Yes, you can buy property as a foreigner. However, you own it on a 50-year renewable lease, not forever. There are also limits: you can’t own more than 30% of the units in a condo building.
• Two Cities, Two Stories: Hanoi’s apartment prices are skyrocketing (up 29.6% year-on-year), while Ho Chi Minh City’s market is stabilizing after a price correction, offering different kinds of opportunities for investors.
• New Laws are a Game-Changer: The new Land and Housing Laws, effective in 2025, are making the market more transparent and accessible, especially for overseas Vietnamese, which is expected to boost demand.

1. Why is Everyone Talking About Vietnam’s Real Estate Market in 2025?

It seems like you can’t browse an investment forum or read a finance article without seeing something about Vietnam. There’s a good reason for all the buzz, and it boils down to a powerful mix of growth, strategic importance, and modernization that creates FOMO (Fear of Missing Out) among savvy investors.

First, Vietnam’s economic growth is simply phenomenal. After expanding by over 7% in 2024, top institutions, such as the World Bank, are forecasting another strong year in 2025. These numbers indicate a rapidly growing middle class with more money to spend on better housing, which, in turn, fuels the property market.

Then there’s the “China+1” strategy, which has turned Vietnam into a global manufacturing darling. For example, imagine a big company like Samsung making all its phones in one country. If something goes wrong there, like a trade war or a pandemic, production stops. The “China+1” strategy is like them deciding to build a second major factory in a promising and stable country like Vietnam to keep business safe.

This shift brings a flood of foreign direct investment, jobs, and housing demand near industrial hubs. In fact, high-tech products now account for over 50% of Vietnam’s total exports, a massive jump from just 8% in 2010.

Finally, Vietnam is investing heavily in its future with massive infrastructure projects. We’re talking about the new Long Thanh International Airport near Ho Chi Minh City, designed to handle 100 million passengers a year, and new metro lines that are making it easier to live in the suburbs and commute to the city. This opens up new areas for more affordable, modern housing developments.

2. What are the Property Prices for Vietnam City

When you look at Vietnam property, you’re really looking at two main characters: the historic, rapidly appreciating capital of Hanoi, and the bustling, massive economic engine of Ho Chi Minh City (HCMC). Each city tells a different story in 2025, and understanding their differences is key.

Hanoi’s market is what experts are calling “red-hot”. Prices are climbing at a breathtaking pace, partly due to strong demand and partly to improved confidence from new, clearer laws. In contrast, HCMC’s market is more like a giant taking a breath. After a period of rapid growth, it’s now stabilizing and going through a “price recalibration,” which could present excellent buying opportunities before the next wave.

Here’s a simple side-by-side look to help you see the key differences:

a. Hanoi vs. HCMC Property Market Snapshot (2025)

So, what does this all mean for you? If you’re looking for rapid capital gains and can handle a fast-moving market, Hanoi might be your play. If you prefer finding value in a more stable, mature market with slightly higher rental yields, HCMC could be the perfect fit.

3. Can a Foreigner Actually Buy Property in Vietnam?

This is the golden question, and the answer is clear: yes, but with some fundamental rules. Thanks to Vietnam’s relaxed foreign ownership laws over the years, the door is open to international investors. But you need to know precisely what you’re stepping into.

Here’s the breakdown in the simplest terms:

1. It’s a Lease, Not a Purchase: This is the most essential concept to grasp. When you buy a condo or house, you’re not buying the land forever. Think of it like a very, very long-term rental from the government. You get a 50-year leasehold. During that time, you can live in it, rent it out, sell it, or pass it on in your will. After 50 years, you can apply to renew it once for another 50 years.
2. The 30% Condo Rule: To prevent foreign investors from buying up entire buildings, the government has set a cap on foreign ownership. In any single condominium building, no more than 30% of the total units may be owned by foreigners.
3. The 250 House Rule: If you’re interested in landed property, like a villa or a townhouse, there’s another rule. In any given administrative area (about the size of a ward or neighborhood), a maximum of 250 such houses can be owned by foreigners.
4. No-Go Zones: For national security reasons, certain areas are off-limits for foreign ownership. Your real estate agent and lawyer should immediately be able to tell you if a property falls into one of these zones.

Navigating these rules can be tricky. A global real estate network with local experts on the ground can make all the difference. The team at IQI Global, with its vast network of over 60,000 agents, specializes in guiding international investors through Vietnam’s property landscape. Contact us to connect with a local expert who can clarify these regulations for your specific situation.

4. How Do You Buy Property in Vietnam?

So you’ve found a potential property and are ready to move forward. The process of buying a house in Vietnam for a foreigner might seem confusing, but it’s manageable if you follow a clear set of steps. Rushing is your enemy; diligence is your best friend.

1. Find a Reputable Agent & Lawyer: This is non-negotiable. Don’t try to do it all yourself. You need a trusted local real estate agent to find good properties and a bilingual lawyer who specializes in property transactions for foreigners to protect you from any legal traps.
2. Carry Out Due Diligence (The “Pink Book” Check): Before any money changes hands, your lawyer must verify the property’s ownership certificate, known as the “Pink Book” or “Sổ Hồng”. They will check that the seller actually owns it, that the property is approved for foreign ownership, and that there are no legal claims against it.
3. Sign the Reservation Agreement & Pay a Deposit: Once you’re confident, you’ll sign a reservation agreement and pay a small deposit to take the property off the market. For new “off-plan” properties, the maximum initial deposit is capped at 5% by a new law.
4. Sign the Sales and Purchase Agreement (SPA): This is the primary, legally binding contract. Your lawyer should review it thoroughly to ensure all terms, including the price and payment schedule, are correct before you sign it in front of a notary.
5. Make Payments & Secure Financing: You will make payments in installments as outlined in your SPA. Getting real estate financing options in Vietnam can be tough for non-residents, so many international buyers pay with cash.
6. Receive Your “Pink Book” (Ownership Certificate): After the final payment is made and the property is handed over, your lawyer will submit the paperwork to get the “Pink Book” updated with your name. Congratulations, you are now the official owner of the property for the next 50 years!

Finding trustworthy professionals is step one. IQI Global‘s tech-driven platform and extensive network of trained ‘Warriors’ offer a one-stop solution, connecting you with vetted agents and comprehensive services from brokerage to property management, streamlining your buying journey.

5. What are the Biggest Risks of Investing in Vietnam Real Estate?

Every great opportunity comes with risks, and it’s crucial to go in with your eyes wide open. A balanced view builds trust and prepares you for the challenges.

Risk 1: The Real Estate Bubble in Vietnam Concern

With prices in cities like Hanoi rising so quickly, many are asking whether the market is overheating. The concern is genuine enough that even Vietnam’s Prime Minister, Pham Minh Chinh, famously asked, “So many people need houses, but with prices so high, who can afford them?”. The government is walking a tightrope between controlling prices through credit limits and fueling economic growth, creating uncertainty.

Risk 2: Developer Reliability & Red Tape

Not all developers are created equal. There have been stories of projects facing long delays or not being completed at all, especially with smaller, less-established companies. It’s one of the most significant risks of investing in Vietnam’s real estate market. Sticking to reputable giants like Vinhomes or Novaland, or a real estate company like IQI, is a crucial safety measure for getting a thorough background check on a developer.

Risk 3: US Tariffs & Global Headwinds

The global economy can be unpredictable. There is an ongoing “wait-and-see” approach in the market regarding potential US reciprocal tariffs, which could impact Vietnam’s export-driven economy. While Vietnam has shown remarkable resilience, it’s not entirely immune to global economic shifts.

6. What are the Main Taxes and Fees When Buying?

Budgeting correctly means looking beyond the sticker price. Fortunately, transaction costs in Vietnam are pretty reasonable compared to those in other countries in the region. When you buy a property, here’s a simple checklist of the main expenses to expect:

• Value Added Tax (VAT): 10% of the property value, but this only applies to new properties you buy directly from a developer.
• Registration Tax: 0.5% of the property value. This is a one-time fee to register your name on the official title of ownership.
• Maintenance Fee (“Sinking Fund”): 2% of the pre-tax property price. This is a one-time payment into a fund for future major repairs and upkeep of the building’s common areas.
• Notary & Legal Fees: These fees are usually relatively small and vary depending on the lawyer and the deal’s complexity.

If you plan to rent out your property, the income tax is straightforward. Any rental income above about US$4,000 per year is taxed with a 5% Personal Income Tax and a 5% VAT.

So, what’s the final verdict on Vietnam real estate in 2025? It’s a market of compelling contrasts, offering explosive economic growth and tangible risks in equal measure.

Success hinges not just on entering the market, but on navigating its unique leasehold system and complex dynamics with diligence and expert guidance. For the well-prepared investor, Vietnam remains one of Asia’s most exciting growth stories.

Feeling ready to explore the possibilities, but want a guide you can trust? The journey into a new market is always easier with a team that knows the terrain. IQI Global‘s unique blend of powerful technology and a vast network of over 60,000 local, on-the-ground professionals is designed to give you a decisive advantage.

Whether you’re exploring your first condo in Ho Chi Minh City or analyzing industrial opportunities, we provide the clarity and support you need. Contact us today to start your investment journey with confidence.

7. Frequently Asked Questions (FAQs)

Ready to invest in Vietnam? Don’t navigate the market alone. Connect with IQI Global’s local experts for trusted guidance, exclusive access to prime properties, and a seamless journey to successful ownership.

Continue Reading

1. Why Malaysia’s Tourism Boom is Creating Prime Investment Opportunities in 2025
2. Earn in SGD With Your Property: Why Investing in the Johor-Singapore SEZ is a Smart Move!
3. Auction Home vs. Blacklisted: Key Differences to Know Before Buying Property

Reference

1. Delmendo, L. C. (2025, July 14). Vietnam’s residential property market analysis 2025. Global Property Guide. retrieved from
   https://www.globalpropertyguide.com/asia/vietnam/price-history
2. Finch, S. (2025, June 16). Vietnam housing market poised for growth despite tariff challenges. Property Guru. retrieved from
   https://www.asiapropertyawards.com/en/vietnam-housing-market-poised-for-growth-despite-tariff-challenges/
3. Hiep, L. H. (2025, October 3). Is Vietnam headed for a property market crisis? Fullcrum. retrieved from
   https://fulcrum.sg/is-vietnam-headed-for-a-property-market-crisis/
4. Invest Asian. (2025, August 26). Investing in Vietnam property: The ultimate guide. retrieved from
   https://www.investasian.com/country-guides/invest-vietnam-property/
5. Knight Frank. (2025, June 22). Eyes on Vietnam: The quiet giant of Asian real estate is waking up. The Investor. retrieved from
   https://theinvestor.vn/eyes-on-vietnam-the-quiet-giant-of-asian-real-estate-is-waking-up-d16085.html
6. Kumar, K. (2025, July 9). Property investment in Vietnam: Foreigner’s guide (2025). Global Property Guide. retrieved from
   https://www.globalpropertyguide.com/asia/vietnam/buying-guide
7. Le, T. (2025, Q2). Broad legal & administrative reforms sustain momentum despite headwinds, Market Brief | Q2 2025. JLL Vietnam Property Intelligence Centre (VPIC). retrieved from
   https://www.jll.com/en-sea/insights/vietnam-property-market-brief
8. Mordor Intelligence. (2025, June 26). Vietnam residential real estate market analysis – trends, forecast, size & industry growth report (2025 – 2030). retrieved from
   https://www.mordorintelligence.com/industry-reports/residential-real-estate-market-in-vietnam
9. Nguyen, L. (2025, September 19). Buying property in Vietnam: A complete guide for foreigners (2025 update). Viettonkin Consulting. retrieved from
   https://viettonkinconsulting.com/real-estate/buying-property-in-vietnam/
10. Singh, S. (2025, March 26). Vietnam real estate market 2025: A prime investment destination in Southeast Asia. Vietnam Briefing. retrieved from
    https://www.vietnam-briefing.com/news/vietnam-real-estate-market-2025-prime-investment-destination-southeast-asia.html/
11. Svaiko, G. (2024, November 21). Buying property in Vietnam as a foreigner. Wise. retrieved from
    https://wise.com/gb/blog/buying-property-in-vietnam

The post Key Things to Know About Vietnam Real Estate Before You Invest! appeared first on IQI Blog.

Ramadan is a time of togetherness, reflection, and, of course, delicious food.

As the sun sets, many Muslims seek the perfect place to break their fast with a full meal, while others search for sahur-friendly bites.

Thankfully, Johor Bahru is home to some of the best Ramadan bazaars, offering a plethora of food ready to help break the fast.

Whether you’re a local or visiting from Kuala Lumpur or Singapore, these bustling night markets offer an authentic taste of Ramadan.

1. Bandar Baru Uda Bazaar

Nestled around the Masjid Jamek in Bandar Baru Uda, this Ramadan bazaar is a culinary haven, easily accessible by public transport or car, though parking can be challenging during peak hours.

This bazaar is well-known for its traditional dishes, with favourites like Murtabak Kampung Melayu Warisan, rich Air Kathira Abu Bakar, and classic dishes such as nasi kerabu and ikan bakar.

The proximity to the mosque provides prayer facilities, making it convenient for many Muslims. Driving from Johor Bahru city centre typically takes 15 to 20 minutes, depending on traffic.

2. Pasar Tani Permas Jaya

Blending the atmosphere of a traditional market with the festive spirit of Ramadan, Pasar Tani Permas Jaya is a must-visit for those looking for both fresh produce and a wide variety of food.

Visitors can grab street food like char kuey teow, fried rice, and roti john while shopping for fresh fruits and vegetables.

This bustling bazaar is about a 20 to 25 minute drive from Johor Bahru city centre, making it a popular spot among locals looking to eat well during the fasting month.

3. Larkin Sentral Bazaar

Located at the Larkin Sentral transport hub, this bazaar is packed with a variety of stalls selling everything from traditional Malay meals to modern snacks.

Whether you’re craving mee goreng, fried chicken, or a refreshing glass of teh tarik, this night market has it all.

Since it is a major transport hub, public transport options are readily available, making it a convenient choice for both locals and visitors from Malaysia and Singapore.

Driving from Johor Bahru city centre takes about 10 to 15 minutes, depending on traffic.

4. Jalan Sagu, Taman Daya Bazaar

This neighbourhood favourite exudes local charm, offering a relaxed atmosphere and friendly vendors.

It’s a great place to discover hidden gems, from oyster omelette to classic dishes like ayam percik and nasi kerabu.

Due to its neighbourhood location, it’s best to ask locals for recommendations on the best stalls.

If you plan on travelling from Johor Bahru city centre, the drive to Taman Daya takes about 20 to 25 minutes.

5. S’mart Pandan Bazaar

Situated near S’mart Pandan, a well-known fresh market, this bazaar is perfect for those looking to combine grocery shopping with a delicious feast.

Expect to find a variety of dishes, including ikan bakar, apam balik, and fried noodles.

You can also grab sweet treats like putu piring and desserts to complete your meal.

From Johor Bahru city centre, it’s roughly a 15 to 20 minute drive to S’mart Pandan, making it a convenient location for breaking fast.

Explore More of Johor Bahru

If you’re in Johor Bahru, don’t miss other vibrant destinations like Iskandar Puteri and Forest City, which offer unique dining and leisure experiences.

These night markets and Ramadan bazaars are not just about food; they are about community, culture, and the shared experience of fasting and feasting.

From bustling city hotspots to charming roadside stalls, each bazaar offers a unique experience filled with mouth-watering dishes.

Whether you’re looking for classic Malaysian meals, fresh market finds, or a convenient spot for iftar, these top bazaars have something for everyone.

So, gather your loved ones, explore the vibrant Ramadan scene in Johor Bahru, and savour the delicious offerings that make this holy month even more special!

FAQs

Ready to start a new chapter in Johor but need the perfect home? Let our trained professionals lead the way to your dream residence! Enquire below now to get started!

Continue Reading:

1. Jom Buka Puasa! Here are 6 Trendy Must-Visit Bazaar Ramadhan in KL and Selangor 2025
2. Excited for Raya 2025? Here’s Everything You Need To Know About Hari Raya Aidilfitri!
3. Raya Open House: The Do’s, the Don’ts and the Downright Ugly

The post Top 5 Bazaars Ramadan in Johor Bahru for a Delicious Feast appeared first on IQI Blog.

Dreaming of a retirement filled with sun, culture, and adventure, without breaking the bank?

Worried that your Social Security and savings won’t stretch far enough in the US?

It’s a valid concern. But what if there was a solution?

Malaysia offers an incredible retirement lifestyle, at a fraction of the cost. Let’s delve into why it’s topping the lists for American expats!

1. Best Places to Retire in 2025 Ranking

This Ranking is based on Authority American Magazine, International Living, on Best Places to Retire in 2025.

2. Why is Malaysia a Top Choice for American Retirees?

Malaysia has consistently ranked as a top retirement destination globally, and it’s especially appealing to Americans.

In fact, Malaysia ranked #7 globally and the remarkable #1 in Asia as the top country for retirement for Americans!

But what makes it so attractive? Several key factors combine to create a truly compelling proposition:

a. Unbeatable Affordability

Your retirement dollars stretch much further in Malaysia. The cost of living is significantly lower than in the US, allowing for a comfortable, even luxurious, lifestyle on a modest budget.

b. High-Quality, Affordable Healthcare

Malaysia boasts a world-class healthcare system that’s both accessible and affordable. Many doctors are trained in the US, UK, or Australia, and English is widely spoken.

c. Stunning Natural Beauty & Vibrant Culture

From pristine beaches and lush rainforests to bustling cities and historic towns, Malaysia offers a diverse range of experiences.

The blend of Malay, Chinese, Indian, and European influences creates a unique and welcoming culture.

d. Easy Retirement Visa Options

The Malaysia My Second Home (MM2H) program, and other visa options, make it relatively straightforward for American retirees to gain long-term residency.

e. English Widely Spoken

Thanks to its British colonial history, English is widely spoken, making everyday life and communication much easier for American expats.

3. How Much Does it Really Cost to Retire in Malaysia?

Let’s get down to brass tacks: your budget. The good news is that Malaysia offers exceptional value for your money.

While individual spending will vary, here’s a realistic breakdown to help you plan, referencing those all-important Numbeo statistics:

a. Cost of Living Comparison (Malaysia vs. USA) – Key Indices

Source: Numbeo as February 2025

What does this actually mean? Let’s put these numbers into perspective:

i. Example 1: Frugal Living

A single retiree could live comfortably in a smaller city like Ipoh or on the outskirts of a larger city for around $1,000 – $1,500 per month. This would include rent for a one-bedroom apartment, utilities, groceries, local transportation, and occasional meals out.

ii. Example 2: Moderate Lifestyle

A couple living in a more central location, like Penang or Kuala Lumpur, could enjoy a very comfortable lifestyle for $2,000 – $2,500 per month. This would allow for a two-bedroom apartment, more frequent dining out, entertainment, and even some travel within Malaysia.

iii. Example 3: Luxury Living

Even a “luxury” lifestyle in Malaysia – a spacious condo with a view, regular fine dining, frequent travel, and private healthcare – could be achievable for $3,000 – $4,000 per month, a fraction of what it would cost in major US cities.

b. Housing Buying Costs: A Major Factor and Comparison

Source: Numbeo as February 2025

Key Takeaway: Rent, especially, is dramatically lower in Malaysia. This is a huge factor in reducing your overall retirement expenses.

4. What’s Healthcare Like in Malaysia for US Expats?

Healthcare is often a major concern for retirees. Thankfully, Malaysia offers a reassuring solution. The country has a two-tiered system:

• Public Healthcare: Available to residents, including MM2H visa holders, and offers very low-cost care. However, wait times can sometimes be longer.
• Private Healthcare: Widely available, extremely affordable compared to the US, and offers excellent quality. Many doctors are internationally trained.

a. Healthcare Index Comparison

Source: Numbeo as February 2025

For American retirees, this translates to significant cost savings and peace of mind. A routine visit to a general practitioner (GP) might cost as little as 15-50, and specialist consultations are also remarkably affordable compared to US prices.

You’ll find that prescription medications are often a fraction of what you’d pay back home. Many expats choose to secure private health insurance for added convenience and coverage, but even these premiums are significantly lower than comparable plans in the US.

This affordability, combined with the high quality of care and English-speaking medical professionals, makes Malaysia a leading destination for medical tourism.

5. Understanding the Malaysia Retirement Visa

Malaysia offers several visa options, with the Malaysia My Second Home (MM2H) program being the most popular for retirees.

Here’s a simplified overview:

a. MM2H Visa – Key Requirements

b. Documents Required for MM2H Application

To successfully apply for the MM2H visa, you’ll need to gather and submit the following documents. It is essential all are accurate and complete:

Important Notes:

• All documents not in English must be translated by a qualified translator (certified translations are often required).
• The specific requirements and procedures can change. Always refer to the official MM2H website for the most up-to-date information.
• Consider using a licensed MM2H agent. They can guide you through the process and ensure you have all the necessary documentation.
• There are other visa options, including shorter-term visas and visas for those who want to work part-time.

It is highly recommended to check the Official MM2H website for the most up-to-date requirements and application procedures.

6. Best Places to Live in Malaysia for American Retirees

Choosing where to live in Malaysia is a personal decision. Here’s a quick comparison of popular choices:

Remember: Visit and explore different areas before making a final decision! Your personal preferences are key.

7. FAQs about Retiring in Malaysia as Americans

Malaysia offers a compelling combination of affordability, adventure, and a welcoming culture, making it an increasingly popular choice for American retirees. Do your research, plan carefully, and you could be enjoying your golden years in this Southeast Asian paradise.

“You only live once, but if you do it right, once is enough.” – Mae West.

Are you interested in Malaysian property and need some help? We can help you! Approach us and let us streamline your home-finding process now!

Continue Reading:

1. Top 6 Things To Do In Bangsar During The Weekend
2. Renovating vs. Remodelling Home: What Are The Differences? 
3. Home Buying Story: How I Bought My First House as a Single Mother Without Any Backup Plan.

The post  Retire in Malaysia: #1 in Asia for American Retirees! appeared first on IQI Blog.

Are you feeling lost in the maze of stamp duty or property transaction costs in Malaysia?

The ever-changing rules and calculations surrounding stamp duty can feel overwhelming, leaving you anxious about making a costly mistake.

But fear not! This comprehensive guide will demystify stamp duty, providing you with the clarity and confidence to navigate your property journey in Malaysia.

1. Tenancy Agreement Stamp Duty (NEW)

When it comes to rental properties, stamp duty is calculated based on the monthly rental and the duration of the tenancy. As of January 1, 2025, the tenancy agreement stamp duty increased in 2025. The new rates for stamp duty on rental agreements are as follows:

Source: Finance Act 2024

Stamp duty is calculated based on every RM250.00 or part thereof, depending on the average rent and other considerations for the entire year.

a. Example Calculation (Based on old calculation):

Let’s say you’re renting a property for RM1,800 per month for 3 years.

1. Calculate Annual Rent: RM1,800 x 12 months = RM21,600
2. Subtract the Exemption Threshold (if applicable): RM21,600 – RM2,400 = RM19,200 (The RM2,400 threshold is no longer applicable as of January 1, 2025)
3. Divide by RM250 and Round Up: RM21,600 ÷ RM250 = 86.4, rounded up to 87
4. Multiply by the Applicable Rate (RM3 for 3-year tenancy, based on old rates): 87 x RM3 = RM261
5. Add Stamp Duty for Tenant’s Copy: RM261 + RM10 = RM271

b. Important Note

The tenant is responsible for paying the stamp duty on the tenancy agreement, not the landlord.

2. Deadlines and Penalties for Late Stamping (NEW)

It’s crucial to pay stamp duty within the stipulated timeframe to avoid penalties.

• Instruments executed within Malaysia: Must be stamped within 30 days of execution.
• Instruments executed outside Malaysia: Must be stamped within 30 days after it has been first received in Malaysia.

a. Penalties for Late Stamping (Effective from January 1, 2025):

Source: Finance Act 2024, The Sun

b. Before January 1, 2025, the old penalty rates are:

Source: LHDN Malaysia, Cleartax, Finance Act 2024

c. Consequences of Unstamped or Insufficiently Stamped Instruments:

• Inadmissible in Court: The document will not be accepted as evidence in a court of law.
• Cannot Be Acted Upon by Public Officer: A public officer will not act upon an unstamped or insufficiently stamped instrument.

3. Understanding Stamp Duty

Stamp duty is a tax levied on legal documents, specifically those related to the purchase or transfer of real estate, as well as tenancy, etc. in Malaysia. It’s governed by the Stamp Act 1949 and overseen by the Lembaga Hasil Dalam Negeri Malaysia (LHDN), the Inland Revenue Board of Malaysia.

Think of it as a mandatory fee that validates your property-related documents, making them legally binding and admissible in court. It is not merely a formality but a cornerstone of secure and legal property transactions.

4. Why Should You Care About Stamp Duty?

Understanding stamp duty is not just about ticking a legal box but making informed decisions.

No matter you’re a first-time homebuyer, a seasoned investor, or simply transferring property to a loved one, knowing the ins and outs of stamp duty can save you significant sums of money and prevent legal headaches down the road.

It directly impacts your financial planning and ensures a smooth, legally sound property transaction.

5. The Different Shades of Stamp Duty: Ad Valorem and Fixed Duties

In Malaysia, stamp duty comes in two primary forms:

• Ad Valorem Duty: This is the most common type for property transactions. The amount payable is calculated as a percentage of the property’s value or the consideration stipulated in the instrument, whichever is higher. The higher the property value, the higher the stamp duty, although there are some exemptions that we will discuss later.
• Fixed Duty: This type of duty applies a predetermined amount, regardless of the property’s value. It’s typically levied on specific legal documents, such as certain types of agreements, as outlined in the First Schedule of the Stamp Act 1949.

6. Who Foots the Bill? Determining Liability for Stamp Duty

The responsibility for paying stamp duty isn’t arbitrary.

The Third Schedule of the Stamp Act 1949 clearly outlines who is liable for specific instruments. In most property transactions, the buyer is responsible for paying the stamp duty on the instrument of transfer (MOT) and SPA.

The borrower is responsible for paying the stamp duty on the loan agreement.

7. Stamp Duty Rates on Instruments of Transfer in Malaysia (2025)

The cost of stamp duty on the transfer of property, excluding shares, stock, or marketable securities, depends on whether the buyer is a Malaysian citizen/permanent resident or a foreigner/foreign company.

a. For Malaysian Citizens and Permanent Residents:

Source: iProperty Malaysia

b. For Foreign Companies, Non-Citizens, and Non-Permanent Residents:

Source: PwC

c. Example Calculation

Let’s say you’re a Malaysian citizen buying a property for RM600,000. Here’s how the stamp duty is calculated:

• First RM100,000: RM100,000 x 1% = RM1,000
• Next RM400,000: RM400,000 x 2% = RM8,000
• Remaining RM100,000: RM100,000 x 3% = RM3,000
• Total Stamp Duty: RM1,000 + RM8,000 + RM3,000 = RM12,000

8. Stamp Duty on Loan Agreements

When you take out a loan to finance your property purchase, the loan agreement is also subject to stamp duty.

a. Standard Rate

Generally, a flat rate of 0.5% of the total loan amount applies.

b. Reduced Rate

For specific Malaysian Ringgit loan agreements or instruments without security and repayable on demand or in a single bullet repayment, a reduced rate of 0.1% may apply.

c. Example Calculation

If you take out a loan of RM540,000 (90% of the RM600,000 property), the stamp duty on the loan agreement would be:

RM540,000 x 0.5% = RM2,700

9. Stamp Duty Exemptions and Remissions in Malaysia

Fortunately, the Malaysian government offers several exemptions and remissions to ease the financial burden of stamp duty, particularly for first-time homebuyers and specific property transfers.

a. First-Time Homebuyers Exemption (i-MILIKI):

This initiative aims to encourage homeownership among Malaysians.

• Properties valued up to RM500,000: Full stamp duty exemption on both the instrument of transfer and loan agreement. This applies to Sale and Purchase Agreements executed between 1 January 2021 and 31 December 2025.
• Properties valued between RM500,001 and RM1,000,000: 75% stamp duty exemption on the instrument of transfer for SPAs executed by December 31, 2023. Starting from 2024, first-time homebuyers purchasing homes above RM500,001 will not benefit from any stamp duty exemption.

b. Eligibility Criteria for First-Time Homebuyers Exemption:

• Malaysian citizen.
• Must not already own a residential property (including inherited or gifted property).
• Applicable to residential properties only (excluding SOHO/SOFO/SOVO types and serviced residences built for commercial use).

c. Transfer Between Family Members:

• Parent and Child:
  • Before April 1, 2023: 50% remission of stamp duty.
  • From April 1, 2023: Full exemption for the first RM1 million of the property’s value; 50% remission on the ad valorem stamp duty for the remaining value. This applies only to Malaysian citizens.
• Grandparent and Grandchild: From April 1, 2023: Full exemption for the first RM1 million of the property’s value; 50% remission on the ad valorem stamp duty for the remaining value. This applies only to Malaysian citizens.
• Husband and Wife: 100% exemption.
• Siblings: No exemption.

d. Other Exemptions and Remissions:

• Abandoned Housing Projects: Stamp duty exemption on instruments executed by a rescuing contractor or developer approved by the Ministry of Housing and Local Government, for loan agreements and transfer of revived residential properties in abandoned projects. This exemption is valid for instruments executed by December 31, 2025.
• Conversion of Conventional Partnership or Private Company to Limited Liability Partnership: Stamp duty exemption on all instruments of transfer of land, business, asset, and share.
• Micro Small and Medium Enterprises (MSMEs):
  • Stamp duty exemption on loan/financing agreements executed between MSMEs and investors for funds raised on a peer-to-peer platform registered and recognized by the Securities Commission (SC). This is valid from January 1, 2022, to December 31, 2026.
  • Stamp duty exemption on instruments for loan or financing up to RM50,000 (increased to RM100,000 for agreements executed from January 1, 2025) between MSMEs and participating banks or financial institutions under the National Small and Medium Enterprise Development Council.
  • Stamp duty exemption on loan or financing instruments executed from January 1, 2025 to December 31, 2026 by MSMEs and investors through Initial Exchange Offering platforms registered with SC.

e. Stamp Duty Order (Remittance & Exemption):

You can check out the various stamp duty order for remittance & exemption from year 2002 until 2021 on LHDN Malaysia official website.

10. Paying Your Stamp Duty: The STAMPS System

Gone are the days of manually stamping documents at the LHDN office.

Now, you can conveniently pay your stamp duty online through the Stamp Assessment and Payment System (STAMPS) via the LHDN website (https://stamps.hasil.gov.my).

This digital system streamlines the process, making it faster and more efficient.

a. Step-by-Step Guide to Paying Stamp Duty Online via STAMPS:

1. Register as a STAMPS User: If you are not already registered, create an account on the STAMPS portal.
2. Log in to STAMPS: Access the system using your registered ID and password.
3. Select “Sistem Duti Setem”: Choose the stamp duty system from the available options.
4. Choose “Penyeteman” and then select the type of instrument: For example, select “Perjanjian Sewa” for tenancy agreement and “Pindah Milik Tanah/ Harta” for the instrument of transfer (e.g., MOT).
5. Fill in the Required Information: Provide details about the instrument, property, and parties involved.
6. Upload Supporting Documents: You may need to upload scanned copies of the relevant documents (e.g., SPA, loan agreement, tenancy agreement).
7. Make Payment: Pay the stamp duty online using FPX or other available online payment methods, such as CIMB BizChannel and Public Bank.
8. Print Stamp Certificate: Once the payment is successful, you can print the stamp certificate. Affix this certificate to the original instrument as proof of payment.

b. Important Note

A stamp certificate is issued electronically for online applications through STAMPS. The certificate should be affixed or attached to the instrument, and the instrument is considered duly stamped.

11. Significant Changes to Stamp Duty in 2025 and Beyond

The Malaysian government is implementing significant changes to the stamp duty regime, transitioning towards a self-assessment system.

a. Key Changes

• Mandatory Stamping: From 2026, stamp duty will be mandatory for all instruments under the Stamp Act, including intercompany agreements.
• Self-Assessment System: This will be implemented in phases:
  • Phase 1 (from January 1, 2026): Rental or lease, general stamping, and securities.
  • Phase 2 (from January 1, 2027): Instruments of transfer of property ownership.
  • Phase 3 (from January 1, 2028): All other instruments not covered in Phases 1 and 2.
• IRB Audit Power: The IRB will have the authority to audit agreements up to five years after the duty is paid or would have been paid.
• Increased Penalties: The maximum penalty is RM100 or 20% of the deficient duty, whichever is higher. If the matter goes to court, the fines can range from RM1,000 to RM10,000, and may have to pay a special penalty equivalent to the underpaid duty.

b. Expert Insights

“The amendments will make stamp duty mandatory and grant the Inland Revenue Board (IRB) the authority to audit agreements up to five years after payment,” says Soh Lian Seng, Head of Tax at KPMG in Malaysia.

He further emphasizes the importance of accurate calculations and classifications under the self-assessment system to avoid hefty penalties.

12. Frequently Asked Questions (FAQs) about Stamp Duty in Malaysia:

a. How much is stamp duty in Malaysia 2025?

The stamp duty rates for property transfers in 2025 depend on the property value and the buyer’s status (Malaysian citizen/permanent resident or foreigner). For Malaysian citizens and permanent residents, the rates are tiered: 1% for the first RM100,000, 2% for the next RM400,000, 3% for the next RM500,000, and 4% for the value exceeding RM1,000,000. For foreigners and foreign companies, a flat rate of 4% applies. For loan agreements, the general rate is 0.5% of the loan amount. Tenancy agreement stamp duty rates have also changed – refer to the “Stamp Duty on Tenancy Agreements” section above.

b. Is there any stamp duty exemption for first-time homebuyers in 2025?

Yes, first-time homebuyers purchasing properties valued up to RM500,000 can enjoy a full stamp duty exemption on both the instrument of transfer and loan agreement if the SPA is executed between January 1, 2021, and December 31, 2025. However, for properties valued between RM500,001 and RM1,000,000, the 75% exemption on the instrument of transfer was only valid for SPAs executed by December 31, 2023.

c. What are the stamp duty rates for properties in Malaysia 2025?

The rates are the same as mentioned in question 1. Refer to the tables provided in the “Stamp Duty Rates on Instruments of Transfer” section above.

d. How to calculate stamp duty on a loan agreement in Malaysia 2025?

The stamp duty on a loan agreement is generally 0.5% of the total loan amount. For example, if you take out a loan of RM450,000, the stamp duty would be RM2,250. However, certain exceptions and reduced rates may apply as mentioned in the “Stamp Duty on Loan Agreements” section.

e. Is there any change in stamp duty in Malaysia 2025?

Yes, there are several changes, including the introduction of a self-assessment system, mandatory stamping for all instruments under the Stamp Act (from 2026), increased audit powers for the IRB, revised penalty rates for late stamping, and changes to stamp duty rates for tenancy agreements.

f. What documents are subject to stamp duty in Malaysia?

Documents related to the sale, transfer, and lease of property, loan agreements, and other instruments listed in the First Schedule of the Stamp Act 1949 are subject to stamp duty. This includes Sale and Purchase Agreements (SPA), Memorandum of Transfer (MOT), Deed of Assignment (DOA), Loan Agreements, and Tenancy Agreements.

g. How to pay stamp duty online in Malaysia LHDN?

You can pay stamp duty online through the Stamp Assessment and Payment System (STAMPS) on the LHDN website (https://stamps.hasil.gov.my). You need to register as a user, log in, select the type of instrument, fill in the required information, upload supporting documents, and make the payment online.

h. How to do tenancy agreement stamp duty?

To pay stamp duty for a tenancy agreement in Malaysia, calculate the amount based on rental and lease duration: RM1 per RM250 of annual rent (≤1 year), RM2 per RM250 (1-3 years), and RM3 per RM250 (>3 years). Submit the agreement for stamping within 30 days via LHDN STAMPS online portal (https://stamps.hasil.gov.my) or at an LHDN branch with required documents (tenancy agreement, NRIC/passport, and property details). Payment can be made online or at the counter, and once approved, both parties should keep a stamped copy for legal reference.

F

Stamp duty is an integral part of property transactions in Malaysia. Understanding its nuances, from rates and calculations to exemptions and payment procedures, is crucial for a smooth and cost-effective property journey.

By staying informed about the latest regulations and leveraging available exemptions, you can navigate the complexities of stamp duty with confidence and make informed decisions that safeguard your financial well-being.

Remember, this guide serves as a starting point, please always consult with legal and financial professionals for personalized advice tailored to your specific circumstances.

The upcoming changes in 2025 and beyond underscore the importance of staying updated and seeking expert guidance to ensure compliance and optimize your property transactions in Malaysia.

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Are you a first-time homebuyer or need expert guidance on purchasing a house? We are here to assist you! Fill out the form below, and our representative will approach you soon!

Continue Reading:

1. Tenancy Agreement in Malaysia: Fees, Stamp Duty and More!
2. i-MILIKI Stamp Duty Exemption for First-Home Buyers Is Ended But Here’s What Government Are Giving!
3. Everything You Need To Know About The Memorandum Of Transfer (MOT)

Citation, Reference and Related Information about Stamp Duty in Malaysia 2025

1. LHDN Malaysia

• Stamp Duty

2. iProperty Malaysia

• Memorandum of Transfer (MOT) and Stamp Duty in Malaysia.
• Sale and Purchase Agreement in Malaysia: What is SPA in property?
• Stamp duty and legal fees calculation for SPA when buying a house in Malaysia.

3. PwC

• 2024/2025 Malaysian Tax Booklet: Stamp Duty.

4. Cleartax

• Stamp Duty in Malaysia: Rates, Exemptions & Penalties.

5. DWG Malaysia

• What is Memorandum Of Transfer (MOT) in Malaysian Property?

6. 小晴天~房产报报看

• How to calculate the new stamping fee 2025!
• Year 2025 | Late stamping fine adjustment.

7. Propertyguru Malaysia

• Tenancy Agreement In Malaysia: 6 Things You Should Know!

8. The Sun

• Tax Matter – Expect significant Changes to Stamp Duty from 2025.

9. KPMG

• Tax experts: Stamp duty reform must come with stronger enforcement, stiffer penalties

The post Stamp Duty Malaysia Increased in 2025! What You Need to Know! appeared first on IQI Blog.

As we step into 2025, many of us feel inspired to turn over a new leaf.

The start of a new year is the perfect time to set goals that pave the way for personal growth and self-improvement.

Instead of vague aspirations, let’s focus on actionable New Year’s resolutions that can truly make a difference in our lives.

Here are 5 ideas to guide you toward a fulfilling year ahead!

Start Journaling for Self-Reflection

Journaling isn’t just about jotting down your day; it’s a powerful tool for introspection and growth.

Writing about your goals, gratitude, or even venting about your day helps you process emotions and clarify thoughts.

Dedicating just a few minutes daily to this practice can lead to greater mental health, self-awareness, and emotional balance.

Use a to-do list to prioritise your writing and track your progress.

Making resolutions like journaling also encourages reducing screen time and establishing a consistent daily routine that fosters reflection and personal growth.

Start Financial Planning and Investing

Saving money and achieving financial clarity start with a simple first step—understanding your income and expenses.

Create a budget that aligns with your priorities, making room to save for both short-term goals and future aspirations.

Take on the rewarding task of exploring investments like stocks, mutual funds, or real estate, which offer a strong financial advantage and help build long-term stability.

By adopting new habits like weekly budgeting and tracking your spending, you can set smart goals and achieve lasting financial security.

These steps not only support your career goals but also pave the way for a brighter future for you and your loved ones.

Explore and Travel the World

Travel isn’t just about ticking destinations off a list; it’s about experiences, growth, and breaking out of routines.

Make 2025 the year you immerse yourself in new cultures and landscapes.

Whether it’s a road trip with new friends or an international adventure, planning your travels—from budgeting to itinerary building—adds to the excitement.

Exploring new foods or learning a new language along the way can make your experiences even more enriching.

For a deeper connection, consider joining a book club abroad or practicing local customs to create meaningful memories.

Get Creative in the Kitchen

Cooking is a rewarding skill that boosts confidence, encourages creativity, and helps you save money.

Trying new recipes brings excitement to your meals while also offering healthier options.

Experiment with different cuisines, join a cooking class, or create a family book club around favourite cookbooks.

This hobby not only nurtures your personal growth but also strengthens bonds with loved ones.

Whether it’s a casual weeknight dinner or a planned event, cooking allows you to track your progress and celebrate small victories in a fun, hands-on way.

Commit to a Sport or Fitness Routine

Exercise is often a clichéd resolution, but finding an activity you genuinely enjoy can make it a lasting new habit.

Whether it’s yoga, swimming, cycling, or joining a team sport, staying active becomes easier when it’s fun.

Setting achievable goals, such as 30 minutes of exercise three times a week, makes the process less daunting.

Incorporating movement into your week can improve both your mental health and physical well-being.

Staying active also enhances your focus, helps reduce stress, and provides a sense of accomplishment.

As we step into 2025, think of your New Year’s resolutions as the starting line for an exciting journey.

This is your chance to embrace personal growth, try a new hobby, and create a life filled with purpose and joy.

So, grab your planner, set those smart goals, and dive in with enthusiasm.

Remember, it’s not about perfection—it’s about progress.

Start small, stay curious, and watch how these simple changes snowball into something extraordinary!

Start 2025 with a fresh focus on growing your investments! Reach out to our agents today and take the first step towards finding the perfect investment tailored to your every need. Let’s make your financial goals a reality!

Continue Reading:

1. The 2025 Holiday Calendar is Out! Plan for the Upcoming Weekends and School Holidays!
2. Back to the 70’s? 2025 Home Trends Is All About Fun, Funky and Futuristic!  
3. Colour Trends 2025: 5 Interior Shades to Paint Your Home Next Year  

The post New Year, New Me: 5 Resolution Ideas for 2025 appeared first on IQI Blog.

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New year calls for new beginnings. Some of you might be diving into home renovations, trying to figure out which colours will go well with your existing furniture or kitchen countertops. 

While experts advise against choosing paint colours solely based on trends (since they can shift over time), it’s still useful to know what’s in vogue to harness the power of colour. 

On December 6^th, Pantone announced the 2025 Color of the Year: Mocha Mousse. But there are a few other shades that are set to make waves in 2025.  

If you’re planning to give your interior a new look with a fresh coat of paint, let these trending colours inspire you to revamp your home for the upcoming year. 

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1. Mocha Mousse  

The Colour Institute has revealed the 2025 Colour of the Year: Pantone 12-1230 Mocha Mousse. A colour that embodies comfort and warmth, reminiscent of everyone’s beloved beverages like coffee and hot chocolate.  

Mocha Mousse is not only grounding and dignified but also celebrated for its versatility, seamlessly blending with various colors across different industries. 

Laurie Pressman, Vice President of the Pantone Colour Institute, described it as “a versatile shade infused with inherent sophistication and earthy refinement […] it creates a strong chromatic foundation for both minimalist and richly decorated.”  

2. Burgundy   

In 2025, get ready to spot burgundy all over the place, particularly in bigger areas like kitchen cabinets and coffee tables.

Unlike its older sibling, red, burgundy carries a more sophisticated aura and it’s a bit more versatile, making it simple to create a colour scheme around this regal colour.  

If you’re planning to whip the colour burgundy into your home interior, try teaming it up with neutral shades like beige or white for the best effect. 

@livingetcofficial Deep, dark burgundy is having an interiors renaissance! There’s a depth and intensity to burgundy that our much-loved neutrals just can't match. This rich, red-wine hue is dark, moody, and intriguing. We promise you won't regret trying this bold color trend in your home, but if you need a little inspiration, take a look at these schemes from some of the best interior designers – featuring all sorts of ways to incorporate the shade into your home Credit to: Barbara Corsico/Living Inside, Kingston Lafferty Kensington Leverne, Albion Nord Stephen Karlisch, Chad Dorsey TN Architecture Alli Fredericksburg, Sarah Stacey Interior Design belarte STUDIO Studio Duggan Beth Golding, Felix Speller Bénédicte Drummond, Miriam Frowein Jasmin Reese Interiors #Livingetc #colortrend #interiordesign #burgundyinterior #burgundydecor #darkinterior #homesoftiktok ♬ ICARUS – Penguin Piano

3. Baby Blue  

Mid blue, or baby blue, is softer than royal blue but more vibrant than pastels, making it a perfect blend that feels refreshing yet cosy.  

In Europe, this colour has already made its mark in bathrooms, as it represents tranquility and a meditative vibe.

If you’re thinking about incorporating this colour into your home, it’s a good idea to start small before expanding it into bigger areas like your living room. 

Getting the right shade of baby blue can be tricky, and you might end up going a bit darker than intended on your first attempt. So, be sure to test and experiment! 

4. Olive Green 

Olive green is this warm, earthy shade that leans towards a grayish green. While it’s not exactly a new trend—Dakota Johnson has had an olive green kitchen since 2020—it really started gaining popularity in mid-2024. 

Experts are saying we’ll see even more of it in 2025. 

This colour works well in different lighting situations and doesn’t clash with other hues in your home. In the morning light, it feels cosy and inviting, while under cooler artificial lights, it keeps a classy vibe. 

Whether you aim for a warm, inviting atmosphere or a sleek, modern aesthetic, olive green seamlessly adapts effortlessly.  

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5. Dusty Pink  

The past year has brought a resurgence of girlhood themes. Styles such as Barbiecore, balletcore, coquette, and all things pink become a focal point on all social media platforms.  

And just like burgundy has taken over red, we’re totally into pinks with brown undertones, which is known as Dusty Pink. 

When it comes to this colour, we suggest teaming it up with classic shades like grays for a more grounded, earthy vibe. A deep wood brown can also help create a warm, modern look. 

For 2025, interior color trends are expected to reflect a blend of boldness, natural influences, and a sense of calm, blending both modern aesthetics with a desire for comfort and connection to nature.

Keep in mind that incorporating natural textures, sustainable materials, and organic-inspired colour schemes will likely play a central role in future design as well. 

Excited to embrace 2025 and give your home a new interior colour? Whether it’s mocha mousse for your living room or baby blue for your guest room, the first step is finding the perfect place to call home. Contact our agents today!

Continue Reading:

1. Back to the 70’s? 2025 Home Trends Is All About Fun, Funky and Futuristic!  
2. 7 Free Practical AI Interior Design Apps To Design Your Homes
3. 5 Easy DIY Projects Under RM50 to Make Your House More Aesthetic!

The post Colour Trends 2025: 5 Interior Shades to Paint Your Home Next Year   appeared first on IQI Blog.

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With the theme “Ekonomi MADANI Negara Makmur, Rakyat Sejahtera,” the Budget 2025 Malaysia presented by Prime Minister Datuk Seri Anwar Ibrahim on October 18th, 2024 at 4pm, has elicited a diverse range of reactions from the Malaysian public.

Anwar, who is also a Finance Minister, laid the spotlight on his commitment to tackle inflation and improve wages. 

The budget specifies a total allocation of RM 421 billion, comprising RM 82.1 billion for education, RM 45.3 billion for health, and the remaining RM 21.2 billion designated for defence.

This marks the largest budget in Malaysia’s history.

The tabling was focused on three key areas, which reflect the respective theme: Raise the Ceiling, Raise the Floor and Good Governance and Public Sector. 

So, what does the future hold for the people of Malaysia?

Real Estate Focuses

Affordable Housing

It’s looking good for the real estate focuses! A total of RM900 million is allocated for 48 People’s Housing Program projects and 14 Friendly People’s Housing projects.

This includes two new housing projects in Port Dickson and Seberang Perai Tengah. By the end of 2025, 30 of these projects are expected to be finished, helping around 17,500 new residents.

PPR

A part of the Budget 2025, the government highlighted will be focused on supporting low-income individuals under the People’s Housing Programme (PPR).

In line with this commitment, the government plans to invest RM200 million to improve old elevators in PPR housing and RM100 million to create 48 Madani Parks.

Home Loan Agreement

For loan agreement, the government provides personal income tax relief of up to RM7,000 for mortgage interest payments.

Apart from that, people who finalise a home loan agreement from January 1, 2025, to December 31, 2027, could qualify for this tax relief.

There is also a tax relief of up to RM7,000 available for purchasing residential properties valued at up to RM500,000.

Housing Development

Good news! The government has revealed a budget of RM200 million for the development of affordable housing for the people on waqf land by UDA.

Additionally, through collaboration between PNB and PHB, there will be initiatives for affordable housing, student accommodations, and commercial development.

Sejati MADANI

For Budget 2025, the government also plans to set aside RM1 billion next year to support the Sejati MADANI Community Prosperity Project.

All States Development

For Sabah and Sarawak, the MADANI government aims to reduce the development gap of development and comfortable living between states, particularly in important areas like roads, electricity, and clean water.

For this, the total public investment for development in 2025 is expected to be at RM120 billion.

Forest City

A new financial entity will be established by the government to fund the construction and redevelopment of Forest City, Johor Bahru.

This initiative aims to enhance the local economy and create a substantial number of job opportunities, especially in the duty-free zone.

At the same time, the National Energy Transition Roadmap (NETR) project will move into the implementation phase, including the Kenyir Hybrid Hydro Floating Solar Farm and a green hydrogen hub in Terengganu.

Bantuan Rakyat

Ikhtiar Sejati Madani Initiative

For Budget 2025, the government has set up a significant initiative for Bantuan Rakyat.

A total of RM1 billion has been designated for the Ikhtiar Sejati Madani initiative, which includes:

• RM600 million aimed at enhancing the rural economy in villages, towns, remote regions, and Orang Asli communities.
• RM200 million to broaden the Kampung Angkat Madani initiatives in 200 villages.
• RM100 million allocated for public universities to participate in the Kampung Angkat Madani programme, with TVET institutions offering services like home repairs and electrical installations to local residents.
• RM100 million dedicated to empowering PPR communities nationwide through a range of socioeconomic initiatives.

STR

The budget for the Compassionate Assistance Program (STR) in 2025 will rise to RM13 billion, helping around 9 million people (60% of the adult population).

B40 

To continue the yearly tradition, the monthly welfare aid for the poorest elderly citizens has been increased to RM600 from RM500 in 2024.

Child Assistance Rate for Low-Income Families:

• Ages 6 and below – RM250
• Ages 7 to 18 – RM200
• *maximum rate of RM1,000 per family.

Youth 

For young individuals looking to buy their first home, the RM5 billion Step Up Financing Scheme (1-Skim Step Up Financing) has been introduced by the government as a means to aid in helping those who are struggling. 

For unmarried individuals, they are eligible for a monthly compassionate allowance of RM600.

Basic Salary Rate 

The minimum wage will be raised to RM1,700 from RM1,500, starting on February 1, 2025.

For employers with fewer than 5 employees, the enforcement of the RM1,700 minimum wage will take effect on August 1, 2025, allowing a 6-month grace period.

EV Subsidy 

The government is offering up to RM2,400 in rebates for the purchase of new locally assembled electric vehicles (EV), which is supported by a RM10 million allocation.

Public Transport

Prasarana and KTMB have acquired 250 electric buses and 12 passenger train carriages to improve public transport.

And the My50 Monthly Pass will continue, benefiting 180,000 users of buses and trains in the Klang Valley.

Other Highlights

Education

A welcoming news for students studying STEM subjects at public universities; the National Higher Education Fund Corporation (PTPTN), the government has set aside RM500 million for special education funding.

Regarding educational subsidies, the government plans to impose higher tuition fees on students from the top 15% income bracket who attend government boarding schools and public universities.

To encourage higher education savings, the government will extend the personal income tax relief on SSPN net deposits for an additional three years.

Meanwhile, to create high-paying jobs in the AI sector, special tax incentives are offered to private higher education institutions that develop new courses in areas such as digital technology, AI, robotics, IoT, data science, FinTech, and sustainable technology. 

Lastly, RM100 million has been set aside for public universities to carry out the MADANI Adopted Village program.

MyDigital ID

MyDigital ID is a centralised government application that brings together various agencies such as Padu, JPJ, and LHDN.

This application will provide a complete platform for the citizens of Malaysia, helping them use the app to streamline access to government services.

On the other hand, starting April 2025, financial aid will be automatically deposited into MyKad cards, enabling beneficiaries to purchase daily necessities at over 600 supermarkets and grocery stores nationwide.

This initiative is part of the government’s effort to transition into the digital era.

Health

As for health, the Budget 2025 announced the personal income tax deduction for tuition fees and medical insurance premiums has been raised to RM4,000. Other than that, 

• RM45.3 billion allocated to the Ministry of Health to provide quality and accessible healthcare facilities.
• RM1.35 billion designated for the maintenance of healthcare infrastructure, including essential facilities like outdated hospital restrooms.
• RM300 million allocated for upgrading underperforming clinics.
• Parents can fully deduct medical examination fees, including vaccinations, from their taxes. This also covers expenses related to grandparents.

New Taxes

• Sales Tax: Effective May 1, this will apply only to imported goods, excluding basic food items for Malaysians. However, in the future, uncommon foods such as salmon and avocado will be subject to taxation.
• Like Services: Now includes a broader range of commercial services, covering businesses that offer fee-based financial services.  
• Dividend Tax: A 2% tax will be imposed on dividend income over RM100,000 received by individual shareholders, starting from 2025.
• Carbon Tax: The government plans to implement a carbon tax in 2026. This tax will target the steel and energy industries to encourage the use of low-carbon technologies and support green research and development initiatives.
• Sugary Tax: The government has announced a sugar-sweetened beverage tax that will take effect on January 1, 2025. This tax will impose a levy of 40 cents for every liter of sweetened drink.
• However, dividend income from investments such as EPF, unit trusts under PNB, and foreign dividend income is exempt from tax.

Entrepreneur

Business owners can access RM200 million from Retirement Fund Incorporated (KWAP) to invest in local startups.

Additionally, Malaysian companies are encouraged to acquire ICT and computer software to facilitate the transition to e-invoices.

The government has allowed a two-year timeframe for business owners to equip themselves with the necessary tools for the complete rollout of e-invoices.

The government also mentioned that the Public-Private Partnership Initiative (PIKAS) is designed to enhance collaboration between the public and private sectors, aiming to attract RM780 billion in private investments and create 900,000 jobs by 2030.

Furthermore, the government is enhancing the functions of SMEs and has allocated RM50 million in digital grants for local entrepreneurs to remain competitive in the market.

For women entrepreneurs, the SME Bank, in collaboration with the People’s Bank and the People’s Trust Bureau, has set aside RM470 million in loans to support their ventures.

In conclusion, even though the goal for Budget 2025 Malaysia is to tackle inflation and improve wages, with the addition of five new taxes and and numbers of new ‘bantuan rakyat‘ initiative, can Malaysia finally tackle inflation?

Or will it inadvertently create an additional challenge for Malaysians facing an already high cost of living?

On the brighter side, with the introduction of MyDigitalD and four development projects, I think we can all agree that the 2025 Budget will mark a pivotal moment for the nation’s economic development, especially in the real estate industry.

We are eager to see how the Budget 2025 could positively affect the economic, real estate sector and other important industries, leading to progress and growth of the Malaysia state.

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Continue reading:

1. Juwai IQI Suggests More Affordable Housing in Malaysia’s Budget 2025
2. Earn in SGD With Your Property: Benefits of RTS Link and the Johor-Singapore Special Economic Zone (JS-SEZ)
3. Need Some Tips for Buying A Home in Your 20’s? Learn From These First Home Buyers’ Experiences!

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